Income Taxes (Tables)

The components of the net deferred tax liability are as follows:

	May 30, 2013		May 31, 2012
	(in thousands)
Current deferred income tax assets:
Accrued employee benefits	$	838	$	811
Other		2,039		1,986
Net current deferred tax assets	$	2,877	$	2,797

Noncurrent deferred income tax (liabilities) assets:
Depreciation and amortization	$	(58,032)	$	(58,100)
Accrued employee benefits		13,192		12,607
Other		1,324		1,121
Net noncurrent deferred tax liabilities	$	(43,516)	$	(44,372)

Income tax expense consists of the following:

A reconciliation of the statutory federal tax rate to the effective tax rate on earnings attributable to The Marcus Corporation follows:

	Year Ended
	May 30, 2013			May 31, 2012			May 26, 2011
Statutory federal tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		5.3			4.8			4.8
Unrecognized tax benefits and related interest		(0.6)			(1.1)			-
Other		(0.4)			0.6			(2.0)
		39.3	%		39.3	%		37.8	%

A reconciliation of the beginning and ending gross amounts of unrecognized tax benefit are as follows:

	Year Ended
	May 30, 2013		May 31, 2012		May 26, 2011
	(in thousands)
Balance at beginning of year	$	1,614	$	2,543	$	2,623
Increases due to:
Tax positions taken in prior years		102		1,535		-
Tax positions taken in current year		-		-		-
Decreases due to:
Tax positions taken in prior years		-		-		(66)
Settlements with taxing authorities		(1,535)		(2,301)		-
Lapse of applicable statute of limitations		(79)		(163)		(14)
Balance at end of year	$	102	$	1,614	$	2,543